Federal Research

Small Business Innovation Research Program Shows Success But Can Be Strengthened Gao ID: T-RCED-92-32 February 26, 1992

The Small Business Innovation Research Program emphasizes the benefits of technological innovation and the ability of small businesses to transform research and development results into new programs. Even though many of the program's projects have not yet had enough time to achieve their full commercial potential, the program is showing success in Phase III, which centers on the commercial or government applications of developed technology. This is indicated by the $1.1 billion in sales and additional development funding reported as of July 1991, two-thirds of which has occurred in the private sector. In addition, the majority of Phase II projects remain active in Phase III, and companies expect up to $3 billion in further sales and additional development funding through 1993. GAO recommends that the following three issues be addressed to further strengthen the program: (1) the extent of the Defense Department's commitment to increasing private-sector commercialization; (2) inconsistent practices in requiring competition for projects entering Phase III; and (3) the need to clarify the circumstances under which an agency may work on its own or continue working with the company through follow-on contracts after program funding ends.



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